MFs agencies to issue unique IDs

The Association of Mutual Funds in India has allowed fund houses to opt for their own agencies for issuing the unique customer identification number under the "know your client" norm so as to prevent money laundering, Chairman A P Kurian said. AMFI will "shortly" announce details on implementation, Kurian said.

Kurian said, "any mutual fund is welcome to have its own agency. But, through the point of facilitating investors, arrangement with one agency, which is CDSL (Central Depository Services Ltd.), will be done over a period of time. We are in talks with SEBI (Securities and Exchange Board of India) and CDSL."

Earlier there were media reports that AMFI has given the mandate to CDSL for issuing the IDs. Under the KYC norms, any investor who wishes to invest Rs 50,000 and above will have to get a unique ID.

Kurian denied any problems in having uniformity in implementing the KYC norm if fund houses are allowed to choose their own agencies.

He said, "Uniformity will be there. Here, we are just enabling mutual funds and giving them freedom to opt for their own agency."

On service charges, Kurian said, "The service will be free to investors and the entire expenses will be borne by fund houses." Big fund houses like UTI Mutual, Reliance Mutual, and Franklin Templeton are planning to have own agencies, according to industry officials.

UTI Mutual plans to appoint UTI Technology Services Ltd. as its registrar, fund officials said. The KYC norm implementation has now been deferred to Jan 1 instead of November 1, industry officials said.

To begin with, mutual funds are likely to adopt KYC norms for investments over Rs 50,000 and gradually cover all investments, as per industry officials.

Investors need to furnish identity proof such as passport/PAN card/voter's ID/driving licence/ration card/photo identification issues by a gazette official or bank managers of scheduled commercial banks.

Investors also need to provide necessary address proof, passport size photograph, and details of occupancy, date of birth, financial information, and nationality.